PepsiCo earnings miss estimates as North American consumers tighten their budgets

PepsiCo reported weaker-than-expected quarterly earnings. The company's revenue topped Wall Street's estimates, boosted by strong international demand for its snacks and drinks. Pepsi reiterated its full-year forecast.

PepsiCo on Thursday reported mixed quarterly results as the struggles of its North American food and beverage divisions offset strong international demand.

"Results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures," CEO Ramon Laguarta said in prepared remarks shared on the company's website on Thursday.

During Pepsi's second quarter, global oil prices swung dramatically due to the U.S. war with Iran. In the U.S., the national average gas price hit a four-year high of $4.56 per gallon in late May, leading many shoppers to watch their spending.

Here's what the company reported for the quarter ended June 13 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $2.20 adjusted vs. $2.21 expected

Revenue: $24.18 billion vs. $23.95 billion expected

Pepsi reported second-quarter net income attributable to the company of $2.98 billion, or $2.18 per share, up from $1.26 billion, or 92 cents per share, a year earlier. Excluding restructuring and impairment charges and other items, the company earned $2.20 per share. Net sales rose 6.4% to $24.18 billion. Organic revenue, which excludes acquisitions, divestitures and foreign currency, increased 2.4% in the quarter.

Globally, volume for Pepsi's food increased 3%, while volume for its beverages rose 2%.